Eurotunnel 'will miss finance date'

CHANNEL Tunnel operator Eurotunnel is likely to bust its year-end deadline to complete financial restructuring, according to Fitch Ratings, the international credit rating agency.

Chairman Jacques Gounon's demand that creditors write off £3.4bn to £3.9bn of its £6.3bn debts 'will be seen by many creditors as trying to defy gravity', says analyst John Hatton.

More than a million French private investors who have picked up Eurotunnel shares around their present price of 19 cents of a euro already face 15% dilution in December when 'stabilisation notes' issued in lieu of interest are converted-into equity by creditors, Hatton says.

Gounon has lost no time in launching restructuring talks with creditors since being appointed chairman in February, 10 months after French private investors threw out Eurotunnel's previous British-led board in an unprecendented revolt.

The company, which lost £570m on revenues of £555m last year after £298m of interest payments and £395m of special charg e s, is caught between disappointing revenues and the bill for runaway construction costs a decade ago.